DBS Bank chief executive Tan Su Shan has struck an upbeat note on India's external financing prospects, saying strong demand for foreign currency non-resident bank deposits points to persistent confidence among overseas investors and depositors even as capital outflow pressures continue to test the rupee.
Speaking on the sidelines of discussions around India's economic outlook, Tan said the bank is seeing healthy interest in FCNR(B) deposits, a product typically used by non-resident Indians to park foreign currency funds in India. In her view, that demand is an important signal that confidence in India has not weakened, despite bouts of foreign net selling in domestic markets and broader volatility across emerging economies.
Overseas Confidence Holds
Tan's comments come at a time when India's currency has faced intermittent pressure from foreign portfolio outflows, a stronger US dollar and shifting global risk appetite. While such flows can weigh on the rupee in the near term, she suggested the underlying investment case for India remains intact, particularly for long-term capital.
Her remarks are significant because they distinguish between short-term market flows and deeper structural interest in the Indian economy. FCNR(B) deposits, while not a direct substitute for foreign direct investment, can serve as a useful barometer of diaspora sentiment and external trust in India's financial system. For banks, sustained demand for such deposits also helps support foreign currency liquidity.
Tan said India continues to stand out for its growth momentum, expanding digital infrastructure and improving policy credibility. She also pointed to the country's position in artificial intelligence as an emerging advantage, arguing that India is well placed to attract technology-linked investment if it can continue to build scale in data, talent and digital public infrastructure.
FDI And Export Push
The DBS chief said India must keep pushing foreign direct investment and exports as the most durable ways to stabilise the currency and strengthen external accounts. In her assessment, portfolio flows can be fickle, but FDI and export earnings provide a more reliable foundation for balance-of-payments resilience.
That view aligns with a broader policy consensus in India, where officials have repeatedly stressed the need to deepen manufacturing, improve logistics and expand export competitiveness. For sectors such as automotive, electric vehicles and mobility, the message is especially relevant. These industries are capital-intensive, import-sensitive and increasingly tied to global supply chains, making them vulnerable to exchange-rate swings but also well positioned to benefit from sustained FDI.
India's EV and mobility ecosystem, in particular, depends on foreign capital for battery technology, component localisation and charging infrastructure. A stable currency and stronger export base would lower financing risk for manufacturers and suppliers, while also making India a more attractive base for regional production and research.
Tan's comments also underscore a broader shift in how global banks view India. Rather than treating the market solely as a consumer story, lenders are increasingly assessing it as a digital and industrial platform with export potential. That includes opportunities in software, fintech, advanced manufacturing and AI-enabled services, all of which could support a more diversified growth model.
Growth Story Intact
Despite the near-term pressure from foreign selling, Tan remained confident that India's economic trajectory is still favourable. She highlighted the country's digital infrastructure as a major competitive advantage, noting that the scale and efficiency of India's digital rails continue to support financial inclusion, payments innovation and business formalisation.
For policymakers, the challenge is to convert that structural strength into more durable external inflows. That means not only attracting investment into high-growth sectors, but also ensuring that export capacity keeps pace with domestic demand. If India can do both, the rupee may become less vulnerable to episodic market stress.
Tan's remarks are a reminder that investor sentiment toward India is not defined solely by daily market flows. Even as foreign investors trim positions and currency markets react, the underlying appetite for exposure to India's long-term story appears to remain strong. For DBS, that confidence is visible in deposit demand. For India, it may be the more important signal of all.